Unemployment is a great concern in Bangladesh. Every year hundreds of thousands student are coming out from college and university. Though it is one of the major responsibilities of the Government to provide job to those young generation but the Government is failed to meet the job demand among the large population. Only a tiny fraction of total jobless is managed by different government offices and private organization but a majority remain unemployed. Unemployed workers” are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work.
Individuals who are actively seeking job placement must make the effort to: be in contact with an employer, have job interviews, contact job placement agencies, send out resumes, submit applications, respond to advertisements, or some other means of active job searching within the prior four weeks. Simply looking at advertisements and not responding will not count as actively seeking job placement. Since not all unemployment may be “open” and counted by government agencies, official statistics on unemployment may not be accurate. Causes of Unemployment
Historically for a long time British administration was the main cause of this problem. After ending Mughol regime when British came in Sub continent (India, Pakistan, Bangladesh) they started to do business, they exploited the sub-continent. They did not establish any Industry which is helpful to remove the unemployment problem. Though some Industry was made but all of them were placed in Indian Territory. So Bangladesh region was neglected from the British period. After ending British rule in 1947 Pakistan adopted the same rule they established all kinds of Industry in West Pakistan not in East Pakistan.
As a result of Pakistani monopoly rule we saw the freedom fighting war in 1971. After nine months continuous war it is divided and named East Pakistan as a Bangladesh. After 1971 Bangladesh has been facing political crisis badly. As a result no government can take long term massive step to remove the unemployment problem. Within 37 years Bangladesh has experience about eight new governments and two assassination incident at the top level country leader. So now political crisis is one of the major causes of unemployment problem in Bangladesh.
Among others two major parties BNP and Aowamileague are busy to gain only political power. None of these parties are trying to do anything to solve the country’s major problem “UNEMPLOYEMENT PROBLEM” Recent attitude and activity of political parties are very hateful to the common people. By election if a party goes to power then another party cannot accept that, they do not go to parliament they do not express constructive opinion in the parliament which is helpful for common people. But they should not do it. May be there is some discrimination of the election result but there are overall acceptation of the common people.
To think about greater welfare of the country they should keep patient, they should support the Government they should assist the Government to take the long term strategy to remove the unemployment problem. Types of Unemployment Frictional unemployment Frictional unemployment is the time period between jobs when a worker moves from one job to another. Frictional unemployment is an example of a productive part of the economy, increasing both the worker’s long term welfare and economic efficiency, and is also a type of voluntary unemployment.
Frictional unemployment is always present in an economy, so the level of involuntary unemployment is properly the unemployment rate minus the rate of frictional unemployment, which means that increases or decreases in unemployment are normally under-represented in the simple statistics. Natural rate of unemployment The “natural” rate of unemployment is defined as the rate of unemployment that exists when the labor market is in equilibrium and there is pressure for neither rising inflation rates nor falling inflation rates. Classical unemployment
Classical or real-wage unemployment occurs when real wages for a job are set above the market-clearing level, causing the number of job-seekers to exceed the number of vacancies. Cyclical unemployment Cyclical unemployment, also known as deficient-demand unemployment, occurs when there is not enough aggregate demand in the economy. Cyclical unemployment is caused by a business cycle recession, and wages not falling to meet the equilibrium level. Cyclical unemployment rises during economic downturns and falls when the economy improves.
Keynesians argue that this type of unemployment exists due to inadequate effective aggregate demand. Demand for most goods and services falls, less production is needed and consequently fewer workers are needed, wages do not fall to meet the equilibrium level, and mass unemployment results. With cyclical unemployment, the number of unemployed workers exceeds the number of job vacancies, so that if even all open jobs were filled, some workers would remain unemployed. Structural unemployment Structural unemployment occurs when a firm or industry closes down due toa parmanent decline in the demand for its products.
It also occurs when labor market is unable to provide jobs for everyone who wants one because there is a mismatch between the skills of the unemployed workers and the skills needed for the available jobs. Structural unemployment is hard to separate empirically from frictional unemployment, except to say that it lasts longer. As with frictional unemployment, simple demand-side stimulus will not work to easily abolish this type of unemployment. Costs of Unemployment Lost Prodoction The single largest costs or unemployment is losi production. Unemployment is thus negatively related with GDP.
It has been estimated that 1 extra point of un ployment redusec GDP by 2 percent The Distribution Impact The costs of unployment are not borne evenly by different sections of the population. It is the unemployrd people who suffer most. In general unemployment hits the poor people harder than the rich. Lost Tax Revenue Employed people pay taxes on their wages. Society in general benefits from the revenue. Increased Unemployment means loss of tax revenue. Social and psychological Impact Idleness and lrngthy periods of unemployment makes people rusty and less productive.
High unemployment breeds crime, mental anxity and ill health. Though many people care about the number of unemployed, economists typically focus on the unemployment rate. This corrects for the normal increase in the number of people employed due to increases in population and increases in the labor force relative to the population. The unemployment rate is expressed as a percentage, and is calculated as follows: |Year |Unemployment rate |Percent Change | |2003 |40. 00 % | | |2004 |40. 0 % |0. 00 % | |2005 |40. 00 % |0. 00 % | | |2006 |2. 50 % |-93. 75 % | |2007 |2. 50 % |0. 00 % | |2008 |2. 50 % |0. 00 % | |2009 |2. 50 % |0. 00 % | |2010 |2. 0 % |0. 00 % | [pic] The ILO describes 4 different methods to calculate the unemployment rate: • Labour Force Sample Surveys are the most preferred method of unemployment rate calculation since they give the most comprehensive results and enables calculation of unemployment by different group categories such as race and gender. This method is the most internationally comparable. • Official Estimates are determined by a combination of information from one or more of the other three methods.
The use of this method has been declining in favor of Labour Surveys. • Social Insurance Statistics such as unemployment benefits, are computed base on the number of persons insured representing the total labour force and the number of persons who are insured that are collecting benefits. This method has been heavily criticized due to the expiration of benefits before the person finds work. • Employment Office Statistics are the least effective being that they only include a monthly tally of unemployed persons who enter employment offices.
This method also includes unemployed who are not unemployed per the ILO definition. Solution of Unemployment problem Job creation is the number one solution. The issue is one of how to create these jobs. What you MUST do is to get out of the way of small businesses as they produce the most jobs for the dollar invested. To do so, we should: 1. lowers their tax burden. 2. Stop mandating foolish regulations 3. Stop providing grants and gifts to large corporations to unfairly compete against small businesses 4. Increase work output by eliminating union mentalities in the work place.
Basically, we need to start believing that our Government is a necessary evil and that we need as small a Government as possible to get what we really need done. The minimum wage should be lowered, or better yet removed entirely. The idea that minimum wage helps people within this country is silly, but a great vote getter! The idea that raising minimum wage helps people is based on seriously flawed thinking. If it takes 45 minutes of work to buy a loaf of bread and they raise minimum wage, it will still cost 45mins to get that loaf of bread.
The difference is only that it will now be easier for other countries to compete against your job. Lowering minimum wage would do nothing to reduce our standard of living, yet we could export more products to other countries. Reducing minimum wage increases our ability to export products and fights inflation. We say there are jobs but either there is lack of willingness to work or there is no proper connect between aspirant and the corporate cut down payments Here are several solutions to unemployment: 1.
Faster economic growth is viewed as a means of generating more jobs. 2. Cuts in real wages -Cuts in real wages are a reaction to the view that through their demands for higher wages, some groups of workers have priced themselves out of a job 3. Methods of accumulation and dissemination of information on available jobs and workers could be improved -Swedish model, in which job centers have a nationwide, integrated database of jobs, employers, and available employees. This type of database could reduce the time spent by an average worker on the unemployment roll and thus reduce the unemployment rate 4.
Unemployment agencies could tighten their job search and job acceptance requirements 5. Here could be improvements to the education and training provided to young people, with a greater focus on vocational skills 6. Countries need to ensure that their welfare systems do not provide disincentives to work 7. Policies affect the labor market by reducing the supply of labor – For example, work sharing, early retirement, and reduced migration If we watch towards Japan, Korea, Malaysia what we will see? Due to Industrialization they have changed a lot.
Without Industrialization no nation can expect strong economic basement and solution of unemployment problem. After political settlement the first and foremost thing for Bangladesh is, to build up industry to remove the unemployment problem. If they can assure the political calm and stable situation, then foreigner will come to invest in manufacturing sector to build new industry. In this respect Transportation, Road and Highway, Electricity should be reconstructed strongly otherwise everything will be failed.
To intensify the overall industrialization our Ambassadors who are employed in different countries specially Japan, Korea, Malaysia, Singapore can help the Government to adopt strong, effective, active and successful policy. Because they are well known with those countries environment, government and people. They have practical and expert feeling about the development policy in different sector of the respective country. We have already wasted a lot of time. We don’t want to live as the poorest and neglected nation in the world. We want our economic growth, our honor. We have a lot of workforce and a lot of money in the Bank.
But due to proper utilization and proper development planning we are staying in back. In this regard Political leader, Intellectual, Industrialist, Planner, Ambassador, Teacher Student and migrated generation in abroad should contribute to achieve the country’s economic progress. If we can take proper steps to obtain our economic growth, then we can remove our unemployment problem. God says if you want to love me try to love people first. If you believe in God you have to love people. Ask yourself according your ability and responsibility how much has you done to help the people to help the country? 80% People are living in rural area.
After a long struggle a village parents educate his children helped them to grown up. They help them to gain college or university degree. Rest duty is yours. That is Government. Yes It is Government’s duty to provide job, to create job for our young generation. It is fundamental duty of a Government to solve the problem of Unemployment. ———————– Unemployment Rate 40. 00% 40. 00% 40. 00% 2. 50% 2. 50% 2. 50% 2. 50% 2. 50% 2003 2004 2005 2006 2007 2008 2009 2010 Year Value Series1 Series1 40. 00% 40. 00% 40. 00% 2. 50% 2. 50% 2. 50% 2. 50% 2. 50% 2003 2004 2005 2006 2007 2008 2009 2010